I replaced both laundry and garage cabinets as well as replaced carpeting with vinyl flooring in the bedrooms of a rental property. In both cases, the cost of the cabinets and the cost of the flooring were over $2500 each.
I purchased the material myself and then hired separate contractors to perform the installation labor. The labor in both cases cost less than $2500 each and I paid the labor separately from the materials at different times.
I also purchased accessories which were minor in cost and purchased at various stores. The accessories included cabinet knobs/handles for the laundry/garage project and underlayment and shoe molding for the bedroom project.
My question is do I only include the material cost for the cabinets and flooring (over $2500 each) to be depreciated? or do I add the installation labor cost to this material cost and depreciate the total of both for the cabinets and the flooring?
How do I handle the accessories? Can I expense those costs which are minimal? or do I need to add those costs to the cabinet and flooring material costs and depreciate all material costs added together?
To be clear, I will add the cabinets as a separate asset from the flooring. My questions are aimed around what costs to include or not include for each asset.
Final question, what asset classification do the cabinets and flooring get and what should the depreciation duration be?
